Slides
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AF Gruppen ASA Q1 2025 15 May 2025 AF Decom demolishes Engeløybrua in Nordland. Photo: Max Emanuelson
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Improved results and stable order backlog ▪ Revenue of NOK 7,129 (7,187) million in Q1 ▪ Earnings before tax of NOK 214 (186) million in Q1 ▪ Profit margin of 3.0% (2.6%) in Q1 ▪ Cash flow from operations of NOK 330 (128) million in Q1 ▪ Order intake of NOK 11,010 (5,472) million in Q1 ▪ Order backlog of NOK 44,232 (40,275) million as of 31 March 2025 ▪ Net interest-bearing receivables (debt) of NOK 290 (-974) million as of 31 March 2025 2 Overview 1st quarter 2025 The Oseberg Hall at the new Viking Age Museum. Photo: Eirik Førde
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3 Health and Safety Number of lost-time injuries and severe personnel injuries not resulting in lost-time, including subcontractor employees, per million hours worked Lost-time injury frequency (LTIF) Sick leave Number of lost-time injuries, injuries involving substitute work and medical treatment injuries, including subcontractor employees, per million hours worked Total recordable injury frequency (TRIF) 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 2022 2023 2024 Q1 25 4.1% 4.8% 0.0 2.0 4.0 6.0 8.0 10.0 2022 2023 2024 Q1 25 6.9 7.0 0.0 0.5 1.0 1.5 2022 2023 2024 Q1 25 0.5 0.9 1st quarter 2025
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4 Revenues and earnings Revenues Profit marginEarnings before tax 1st quarter 2025 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 NOK million Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 7,187 7,129 186 214 0 100 200 300 400 500 600 700 NOK million Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% Margin Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 2.6% 3.0%
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5 Return on capital employed * Rolling average last four quarters Average capital employed * The Group’s target return on capital employed is 20% Return on capital employed * Last four quarters Earnings before tax and interest expense * 1st quarter 2025 0 1,000 2,000 3,000 4,000 5,000 6,000 NOK million 2021 2022 2023 2024 YTD 25* 4,816 4,771 0 500 1,000 1,500 2,000 NOK million 2021 2022 2023 2024 YTD 25* 1,197 1,220 0% 10% 20% 30% 40% 2021 2022 2023 2024 YTD 25 24.8% 25.6% Interest expenses added Target
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6 Cash flow statement 1st quarter 2025 Cash flow from operations NOK million Q1 2024 2024 EBIT Depreciation, amortisation and impairment Change in net working capital Other Cash flow from operations 128 2,217 Net investments Other capital transactions Interest paid and change in interest bearing debt Net change in cash and cash equivalents 2 693 Net cash and cash equivalents at beginning of period Change in cash and cash equivalents without cash effect Net cash and cash equivalents end of period 348 1,033 Q1 2025 330 1 1,037 -158 -13 -110 -206 190 347 0 -25 -5 700 -35 22 -226 -264 -544 -87 -374 347 -7 1,033 3 223 201 1,149 183 156 701 Taxes paid -45 -58 -298 Dividend to shareholders in ASA 0 0 -380 0 500 1,000 1,500 2,000 2,500 NOK million 2022 2023 2024 2,217 1,5521,460 128 330 YTD YTD 2024 YTD 2025
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7 Net interest-bearing debt and liquidity Net interest-bearing receivables (debt) 1st quarter 2025 Components net interest-bearing receivables (debt) Available liquidity: NOK 4,496 million (including financial facilities of NOK 3,500 million) -974 290 -1 000 -800 -600 -400 -200 0 200 400 NOK million Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 -2,000 -1,500 -1,000 -500 0 500 1,000 1,500 NOK million Q1 24 Q2 24 Q3 24 Q4 24 1,037 Q1 25 Interest-bearing debt Interest-bearing receivables Cash and cash equivalents Lease liabilities - machines Lease liabilities - rental 290 -974
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8 Balance sheet 1st quarter 2025 Equity share Equity Short term debt Long term debt Equity-share*: 24.2% (21.9%) * Equity ratio excluding the effect of IFRS 16 is 25.5% per 31 March 2025 All the company’s covenants exclude the effect of IFRS 16 NOK million 31.03.24 31.03.23 31.12.23 Non-current assets Current assets, ex. cash Cash and cash equivalents Total assets 15,006 15,038 15,003 Equity Long term debt Short term debt Total equity and debt 15,006 15,038 15,003 8,451 5,519 1,033 3,488 1,537 9,978 8,465 8,543 5,504 6,146 1,037 348 3,632 3,288 1,524 1,389 9,850 10,360
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83,270 tonnes = 37,600 (29,777) tonnes reduction in alternative CO2e emissions in this quarter 2 Government requirement in TEK 17 Source separation of 50,267 tonnes (44,096) of waste in this quarter 1 AF Gruppens goal for scope 1 og 2 by 2028 AF Gruppen has a goal of halving total greenhouse gas emissions by 2030, relative to revenue. For 2024, AFs greenhouse gas emissions were 649,822 CO2e, where scope 1 and 2 emissions accounts for 7% 9 Climate and environment Greenhouse gas emissions (scope 1 and 2) Recycled contaminated masses and metal from demolition servicesSource separation rate 1st. quarter 2025 0 10,000 20,000 30,000 40,000 50,000 Base year 2020 Total 2024 Q1 24 Q1 25 45,019 42,954 12,263 9,895 0% 20% 40% 60% 80% 100% Construction Rehab. Demolition Total 93% 96% 95% 95% 0 20,000 40,000 60,000 80,000 100,000 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 69,861 83,270 1 Q1 24 Q1 25 2 Tonnes CO2e Tonnes
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Business Areas 1st quarter 2025 10 AF Decom demolishes Engeløybrua in Nordland. Photo: Max Emanuelson
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11 Impacted by cancelled Stockholm contract ▪ Civil Engineering has high activity and revenue growth of 16% from Q1 last year. ▪ AF Anlegg reports a result below expectations following cancellation costs related to the discontinuation of project E4 Förbifart Stockholm. Remaining project portfolio maintains high activity and good operations in the quarter. ▪ Målselv Maskin & Transport delivered a very good result in Q1. Stenseth & RS reports a good result in the quarter. Eiqon and VSP had weak results in the quarter. ▪ AF Anlegg signed a contract for detailed engineering and building of the new E6 Roterud–Storhove . The contract has a value of NOK 6,350 million excluding VAT. ▪ Order intake: NOK 6,584 (508) million. Order backlog: NOK 20,651 (16,604) million Civil Engineering NOK million Q1 25 Q1 24 2024 Revenues 2,366 2,044 9,590 EBIT 65 116 655 EBT 88 131 723 EBIT % 2.8% 5.7% EBT % 3.7% 6.4% 6.8% 7.5% E6 Storhove–Øyer for Nye Veier. Photo: Hans Fredrik Asbjørnsen
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12 Cancellation of contract at Lovö in Stockholm Civil Engineering E4 Förbifart Stockholm for Swedish Transport Administration ▪ The 19th of February the Swedish Transport Administration terminated the contract with AF Anläggning AB regarding the project E4 Förbifart Stockholm. The business unit has since been subject to legal proceedings. ▪ AF has performed work on the project since the summer of 2020, with estimated remaining production value of ca. NOK 1,000 million excl. VAT. Expected completion was Q4 2025. ▪ E4 Förbifart Stockholm was the only project in AF Anläggning AB. This business unit is expected to be poorly positioned for new contracts in Sweden while the dispute is ongoing. ▪ As a result of the termination we have incurred termination costs amounting to ca. NOK 100 million. ▪ AF strongly disagree with the accusations made by the Swedish Transport Administration and challenges the decision to terminate. The affected business unit will seek reparations for damages as a result of the termination.
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13 Results somewhat below expectations in Q1 ▪ Construction has stable activity in Q1, with a result somewhat below expectations. ▪ AF Byggfornyelse, AF Bygg Østfold, Strøm Gundersen Vestfold and ÅBF delivered good results in Q1. ▪ Haga & Berg and LAB Entreprenør had results somewhat below expectations. Strøm Gundersen and HTB reported results below expectations. AF Bygg Oslo, AF Håndverk and FAS had weak results this quarter. ▪ LAB Entreprenør will rehabilitate a commercial property in Bergen. The contract has a value of NOK 131 million excl. VAT. Strøm Gundersen Vestfold will build a new office building in Horten. The collaboration contract has a value of NOK 108 million excl. VAT. ▪ Order intake: NOK 960 (3,386) million. Order backlog: NOK 9,977 (10,647) million Construction NOK million Q1 25 Q1 24 2024 Revenues 2,114 2,203 8,881 EBIT 69 64 337 EBT 77 66 351 EBIT % 3.3% 2.9% EBT % 3.7% 3.0% 3.8% 4.0% Haga & Berg has renovated «Trelastlageret». Photo: Haga & Berg
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14 Stable activity and improved profitability ▪ Betonmast has stable activity and an improved profitability compared to Q1 of last year. ▪ Betonmast Oslo, Buskerud-Vestfold, Røsand, Innlandet and Østfold delivered good results in the quarter. Betonmast Trøndelag and Asker og Bærum reported somewhat below expectations, while Betonmast Romerike and Boligbygg had weak results in the quarter. ▪ Betonmast announced two new contracts in Q1. Betonmast Røsand will build a hotel by Campus Kristiansund amounting to NOK 320 million excl. VAT. Betonmast Oslo was selected by Oslobygg KF for additional buildings and rehabilitation at Stovner skole. The turnkey contract has a value of ca. NOK 300 million excl. VAT ▪ Order intake: NOK 1,171 (342) million. Order backlog: NOK 4,958 (5,539) million Betonmast NOK million Q1 25 Q1 24 2024 Revenues 1,044 1,005 4,367 EBIT 42 -20 120 EBT 55 -11 163 EBIT % 4.0% -2.0% EBT % 5.3% -1.1% 2.8% 3.7% Trondheim Katedralskole. Photo: Henning Larsen
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15 Low activity ▪ A challenging property market with high interest has continued to contribute to low sales in the quarter. Sales contracts for 25 (19) residential units were signed in the quarter, AF’s share was 11 (8). A total of 79 units were handed over in the quarter. ▪ One project was under production at the end of the quarter: Rolvsrud Arena in Lørenskog. The project has 95 units in production, of which AF’s share is 32. The sales ratio in commenced projects is 34%. ▪ Residential portfolio in development: 1,542 (1,707) units. AF’s share: 779 (852) Commercial portfolio in development: 102,749 (73,407) GFA sqm. AF’s share: 51,966 (36,524) Property NOK million Q1 25 Q1 24 2024 Revenues 5 6 23 EBIT -8 -7 -39 EBT -5 -3 -25 Capital employed 794 870 846 Fagerblom - illustration. Photo: AF Gruppen 15
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16 Improved result and increased order backlog ▪ Sweden has improved profitability compared to the same quarter last year with a lower activity level. ▪ Kanonaden and AF Prefab Mälardalen deliver very good results in Q1. HMB reported results somewhat below expectations, while AF Härnösand Byggreturer, AF Bygg Syd, AF Bygg Öst and AF Bygg Väst had weak results in the 1st quarter. ▪ HMB announced a turnkey contract for the building of nursing homes in Eskilstuna. The project has a contract value of SEK 138 million excl. VAT. ▪ Order intake: NOK 1,455 (905) million. Order backlog: NOK 5,351 (4,672) million Sweden NOK million Q1 25 Q1 24 2024 Revenues 960 1,361 5,399 EBIT 40 2 79 EBT 38 0 65 EBIT % 4.2% 0.1% EBT % 3.9% 0.0% 1.5% 1.2% AF Bygg Syd at Busör ARV. Photo: Kicki Nilsson
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17 Revenue growth and increased order intake ▪ Energy and Environment increased activity levels by 8% compared to Q1 last year. ▪ AF Energi and AF Decom had results somewhat below expectations in the quarter. The environmental centers contributed with a very good result and has recycled 74,900 (63,923) tonnes of material in the 1st quarter. ▪ AF Energi announced that they were awarded a contract for electromechanical works at Aker hospital heating plant. The contract has a value of ca. NOK 100 million excl. VAT. ▪ Order intake: NOK 436 (347) million. Order backlog: NOK 1,265 (1,258) million Energy and Environment NOK million Q1 25 Q1 24 2024 Revenues 365 338 1,510 EBIT 18 17 93 EBT 18 17 90 EBIT % 5.0% 5.1% EBT % 4.9% 5.1% 6.2% 5.9% Rimol Miljøpark and Betong Øst Photo: Eirik Førde
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18 Reduced revenue and weak profitability ▪ Offshore has reduced revenue and weak profitability in the quarter. ▪ Aeron maintains a high level of activity and delivers good profitability. ▪ AF Offshore Decom has low activity and a weak result in the 1st quarter. ▪ Aeron was awarded a contract by the steel producer Stegra for delivery of ventilation systems in their new production facility in Sweden. The contract has a value of ca. NOK 200 million excl. VAT. ▪ Order intake: NOK 338 (183) million. Order backlog: NOK 1,830 (1,297) million Offshore AF Miljøbase Vats. Photo: Daniel Ugas /AF Gruppen NOK million Q1 25 Q1 24 2024 Revenues 261 295 1,081 EBIT 2 14 -201 EBT -5 7 -236 EBIT % 0.9% 4.7% EBT % -2.1% 2.3% -18.6% -21.8% Photo: Aeron 18
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19 Strong order backlog 1st quarter 2025 Order backlog distribution Civil Engineering 20,651 Construction 9,977 Betonmast 4,958 Energy and Environment 1,265 Sweden 5,351 Offshore 1,830 Order backlog 44,232 (40,275) 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 NOK million 2022 2023 2024 2025 44,232 Q1 Q2 Q3 Q4 Development in order backlog NOK million
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Group Strategy AF Gruppen 2025–2028 Theme presentation Q1 25
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Our strategy and priorities are influenced by our surroundings Economic cycles Green transition and technological progress Competition for qualified resources Global uncertainty
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Fotavtry nnsomhet Si erhet alvere fotavtry et innen lima o milj 7 IT mar in 20 av astnin 7 rli ve st 0 alvorli e persons ader o ar eidsrelatert frav r AF Gruppen holds a three-part goal towards 2028 Safety 0 serious injuries and work-related absence Footprint Halving the footprint on the climate and environment Profitability 7% EBIT-margin 20% return 7% annual growth
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Clearing up the past, building for the future
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24 AF Gruppen has two strategic initiatives that will strengthen our ability to achieve our goals Leadership and expertise We will attract, develop and retain the industry's best management and technical expertise. PROJECT MANAGEMENT THE BEST TEAMS 24 Innovation We will lead the way in solving critical societal challenges PRODUCTIVITYADAPTIBILITY
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Leadership and expertise We will attract, develop and retain the industry's best management and technical expertise. Preferred employer Strong culture and high job satisfaction Targeted skills development Robust organization and good managerial capacity
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26 We must ensure compliance with the core principles of our project operations CalculationProject selection Project organizationCustomer relations Procurement Financial management Contract management Planning
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Innovation We will lead the way in solving critical societal challenges Halve the carbon footprint Improve production and project operations Business opportunities Expertise and insight
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Productivity: We will strengthen our competitiveness by improving our production and project activities Measuring and improvement of core processes and critical operations Industrialisation and technology, utilisation of data and artificial intelligence
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Halve absolute emissions for scope 1 and 2 Emissions from machines and buildings owned or controlled y AF, and AF’s own energy consumption Halve total emissions relative to revenue also includes scope 3, which express emissions in the value chain Target for emissions Greenhouse gas emissions: We will halve our total greenhouse gas emissions 7% 72% 21%Scope 3: Purchased goods and services Other scope 3 categories Scope 1 and 2 BY 2028 BY 2030
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Circular economy: We will prepare for re-use or recycling Prevention Re-use Recycling Recovery Disposal 50% reduction of waste sent for energy recovery or landfill by 2030 70% of non-hazardous waste shall be prepared for reuse or material recycling Status 2024 Total ~270,000 tonnes of waste
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Our compass is clear: Competitiveness New business Profitability 31 Our goals are ambitious
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32 AF will seek new strategic positions that develop and differentiate us as an industrial player ▪ Industrial ownership ▪ Project related business ▪ Long term value creation ▪ Differentiating ▪ Develop competence
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Clearing up the past, building for the future Safety 0 serious injuries and work-related absence Footprint Halving the footprint on the climate and environment Profitability 7% EBIT-margin 20% return 7% annual growth Management and disciplines We will attract, develop and retain the industry's best management and technical expertise. We will lead the way in solving critical societal challenges Innovation THE BEST TEAMS We will build the best teams characterized by performance, job satisfaction and professional pride PROJECT MANAGEMENT We will exercise the industry's highest standard for project management ADAPTIBILITY We will realize socially beneficial business opportunities and reduce our footprint PRODUCTIVITY We will strengthen our competitiveness by improving our production and project activities Safety Value-based culture Employee ownership Decentralized decision-making authority Active risk management
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34 Summary ▪ Improved results ▪ Strong financial position ▪ Order intake: NOK 11,010 (5,472) million ▪ Solid order backlog: NOK 44,232 (40,275) million 1st quarter 2025 NOK million Q1 25 Q1 24 2024 Revenues 7,129 7,187 30,638 EBIT 223 201 1,149 EBT 214 186 1,085 EBIT % 3.1% 2.8% EBT % 3.0% 2.6% 3.8% 3.5% Sletta bridge, Eiqon. Foto: Colin Eick
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Thank you for your attention Presentation of Q2 29 August 2025 Helsfyr Atrium. Photo: Hans Fredrik Asbjørnsen